On June 8, 2020, WLF the Supreme Court declined to review a Ninth Circuit decision invites abusive civil suits under the Racketeer Influenced and Corrupt Organizations Act (RICO). The case arose from a civil-RICO suit by a third-party payer and others to recover treble their prescription costs for Actos, an FDA-approved diabetes drug. In an amicus brief urging review, WLF argued that the plaintiffs could not satisfy RICO’s proximate-cause element because they lacked a direct relationship with the defendants. Any costs incurred by the plaintiffs, WLF contended, hinged on the intervening actions of doctors and pharmacy benefit managers. WLF further explained why a civil-RICO action in which a plaintiff need not show proximate cause would be a calamity.

Documents:

Supreme Court cert-stage brief